Mon, 02 Aug 2021 | ADMINISTRATION
It has been announced that lingerie retailer Victoria’s Secret UK has moved from administration into liquidation. The announcement was made by a spokesperson for the firm’s administrators, Teneo, who said that the liquidation would enable Victoria’s Secret UK’s creditor to receive dividends.
Judge Sally Barber made the ruling during an Insolvency and Companies Court hearing last week. The retailer, which had 25 UK stores, fell into administration in June 2020 due to the impact of the Covid-19 pandemic, which exacerbated long-standing difficulties at the company.
The firm’s results for the year ending February 2019 show an operating loss of £170 million, with the company having long been troubled by a combination of changing consumer tastes and declining high street footfall, as well as accusations of sexism and a lack of diversity in its fashion shows and ad campaigns.
In September 2020, parent company L Brands announced a joint venture deal for the UK business with fashion retailer Next. The partnership would see Next take a majority stake in the business, acquire the majority of its assets and operate all of its UK and Ireland stores.
The liquidation spells the end of what remains of the UK business. The brand’s online business, which is not owned by Victoria’s Secret UK, will continue as usual. The UK business’ latest available financial results, to February 2019, show total assets of around £116 million, although the majority will have since been taken on by Next through the joint venture.
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